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DECISION No

DECISION No. 773-TTg ON THE 21ST OD DECEMBER 1994 OF THE PRIME MINISTER ON THE PROGRAM OF TAPPING AND USING WASTE LAND, ALLUVIAL SOIL ON RIVER AND SEA SHORES, AND WATER SURFACE IN THE PLAINS

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government on the 30th of September 1992;

At the proposal of the Minister of Agriculture and Food Industry, the Minister of Forestry, the Minister of Aquatic Resources, the Minister of Water Resources, the Minister of Labor, War Invalids and Social Affairs, the Chairman of the State Planning Committee, and the Director of the National Center of Natural Sciences and Technology,

DECIDES:

ON THE ECONOMIC STRUCTURE AND POPULATION DISTRIBUTION

Article 1.- From now to the year 2000 and the few following years, the branches and levels should make full use of all resources of the different economic sectors in the country and foreign sources of capital for a basic and efficient utilization of the fund of waste land, alluvial soil on river and sea shores, and water surface in the hitherto untapped plains, with the aim of expanding the cultivated area, increasing the output of agro-forestry and fishery commodities, protecting and developing the protection forests and forests of special use on the sea shore for environmental conservation and a balanced ecology, and gradually stabilizing and improving the living standard of the people in the new settlements. The main targets of this campaign are the Plain of Reeds, the Long Xuyen quadrangle, the Ca Mau peninsula, and some areas of waste land in the deltas of the Mekong River and the Red River, and swamps and lagoons along the central and northern coasts.

The protection of the existing protection forests and forests of special use, and the tapping, utilization and regretting of waste land on bare hills (mainly in the mid-and highlands) shall be carried on in accordance with Decision No. 327-CT on the 15th of September 1992 of the Chairman of the Council of Ministers, which was concretized in the document No. 4785/KTN on the 29th of August 1994 of the Government.

Article 2.- The Program of tapping and utilizing waste land and alluvial soil on the river and sea shores, and water surfaces in the plains shall be carried out through projects. These projects must be built synchronously with the aim of developing the economy, shaping the economic structure in the direction of combining agriculture, forestry, fisheries and industry in accordance with the requirement for transforming the rural economic structure along the industrialization-modernization line, re-distributing the population (re-settlement), meet social requirements (in culture, education and health care), building a new, civilized and modern countryside, protecting and improving the general environment and ecology.

The implementation of projects to tap and utilize waste land, alluvial soil and water surfaces must be undertaken step by step in the direction of key planning in given periods, and in conformity with the investment ability of the people and the State. Priority shall b given to those projects which generate employment for many people, help re-settle many people from over-populated areas, the areas which produce a large quantity of commodities of high economic value, and the border areas and islands which play a key role in national security and defense.

Article 3.- The projects for agricultural production, forestry and fisheries must proceed from the natural conditions and investment potential, conform to the regional planning for socio-economic development, have outlets and ensure a lasting and efficient development.

These projects must combine agriculture, forestry and fisheries with the processing industry and the marketing of products; ensure a balance between cultivation and animal breeding; forest protection and regreening; aquaculture, environmental protection and economic development; and measures must be taken to settle all the jobs synchronously from production to processing and the related services.

Irrigation is the measure of prime importance for each project and must be placed in direct relationship which other projects such as improving the soil, expanding the cultivated area, and creating a system of river and land transport on scales suitable to the investment ability.

Article 4.- Importance must be attached to the restoration and expansion of the areas of coastal protection forests, submerged forests, and the planting of a forest belt for each project, with the aim of maintaining the ecological balance and at the same time creating sources of construction materials and fuel on the spot. The area of forests, industrial plants and perennial fruit-trees for each project must occupy no less than 20-30% of the natural area.

Article 5.- Aquaculture projects must be combined with projects for irrigation, agriculture, forestry, hydro-electric power, tourism, etc,. in order to practice aquaculture on suitable scales, with the aim of efficiently tapping all potentials and favorable conditions of each type of water surface, and creating a lasting ecological environment.

Article 6.- Rationally developing industrial, small industrial and handicraft establishments, first of all medium-and small-sized units with modern equipment and technology to raise the product quality and meet the constantly growing demands of the domestic and foreign markets; attention should be paid to centralization and professionalization right from the outset.

A trading network must be organized to ensure the supply of commodities and services to the population and the marketing of products of the local production establishments.

Article 7.- On the application of technical advances and the introduction of new technologies into production:

The expansion of the cultivated area and development of agricultural production, forestry and fisheries must be closely combined with the application of advanced production measures to prevent erosion, protect and constantly increase the fertility of land, prevent the pollution of the environment and water sources, increase productivity, and encourage agricultural production, forestry and fisheries with the transfer of strains and technical advances to ensure that the crops and livestock have high yield and good quality.

In industry, the new and advanced technologies must be applied immediately to produce goods of value for domestic consumption and export.

Article 8.- On the distribution of the population, and cultural and social infrastructure facilities:

The distribution of population must be planned, and carried out increate projects in combination with the building of new settlements and production areas and the plan for development of infrastructure and public utility works, in order to early stabilize the people's life, especially in those areas with difficult natural, economic and social conditions, such as those affected by acidity and salinity, swamps and lagoons, fishing communities which have settled on land, areas prone to natural disasters, areas inhabited by ethnic minorities, and remote areas with an underdeveloped economy.

The populated areas must be built according to a comprehensive plan and step by step, with a view to a new, civilized and modern countryside arranged in groups and at different levels, to form new villages and communes which are also administrative units; transport arteries and canals must be fully used to distribute populated areas in a rational manner. Attention must be paid to measures to build house frames and foundations in such a way as to effectively minimize the harmful consequences of flood. Group of establishments of the small processing industry and handicraft must be combined with populated areas; attention must be paid to developing the comparative advantages of each area, the diversification of products and occupations from the outset in order to help increase the income of the population.

In each project, the branches concerned should mobilize their capital for the immediate construction of essential cultural and social infrastructure facilities (schools, medical stations, local dreads...)

The localities should cooperate with the branches concerned to early move all the households which are still living on swamps, lagoons and the floating fishing hamlets to new settlements on land, zone off populated areas, set forth the production direction, and meet the cultural and social requirements of the people. Boarding schools should be organized to draw all children of school age to school.

Article 9.- Along the above-mentioned directions, the specialized ministries shall cooperate with the ministries concerned to guide and help the localities to early complete the building of an overall project to tap and use waste land, water surface and alluvial soil on river and sea shores for economic development, and stabilize the settlement of people in the provinces to the years 2000 and 2010.

The overall projects of the provinces must be sent to the Permanent Bureau of this Program before August 1995 for submission to the Government for approval and for incorporation into the general plan for socio-economic development.

Basing themselves on the overall projects, the branches concerned shall guide the localities to draw up concrete plans for incorporation into the 1996-2000 five-year Plan and the annual plan for submission to the Prime Minister for consideration and decision. These projects must take into account the capital source in order to concentrate on key constructions and not to spread it thin and scatteredly.

FORMS OF PRODUCTION ORGANIZATION

Article 10.- This Program is carried out mainly reliant on the people's potential of each locality. The various economic sectors should be encouraged to invest in building production establishments to tap and use waste l and, water surface and alluvial soil on river and sea shores, and build cultural, educational and public utilities in many forms, such as State-owned, collective, private, and joint venture (including joint ventures with foreign partners or 100% foreign-invested projects), etc.

The State managing agencies shall guide the economic sectors to draw up projects on a suitable scale according to regional planning in order to create favorable conditions for their implementation.

Article 11.- Production units of organizations and individuals shall be set up in forms suitable to the production, building and trading activities of each project, such as Voluntary Youth groups, Shock Youth, Young Volunteers units, land reclamation companies; businesses, production and processing cooperatives, economic organizations, etc., to undertake parts of the project or the whole project. The units of various economic sectors in the locality should develop joint venture and cooperative relations in order to create an integrated strength to develop production, build a new countryside, ensure equal interests for the different economic sectors, and fulfil their obligations towards the State.

In agricultural production, forestry and a quaculture, production households are autonomous economic units organizes mainly as small and medium sized farms, which are to concentrate on commodity production and to specialize right from the outset.

Article 12.- Scale of projects:

+ 100-3,000 ha for agro-forestry-fishery projects (depending on the terrain and soil of each area and the managing capacity) with a population equivalent to a new hamlet or commune, shall form an administrative unit which is to combine economic and social development with security and defense in accordance with the investment capacity of the people and the State.

+ 500-5,00 ha for forestry-agriculture-fishery projects,

+ 100-3,000 ha for aquaculture projects.

Article 13.- The allotment of land and forest land to households:

Those households settling in new land shall be allotted land, water surface or forest land according to the overall planning and the plan of the project owner, with the participation of the controlling ministry and the local administration; priority in the allotment of land shall be given to local households, the new settlers who have no or little land for production, especially the fishing households who used to live on water surface, but who have moved inland.

The area of land allotted to each household having settled in the project area shall be determined in the light of concrete conditions in each zone. But the general quotas are as follows:

- From 1 to 3 ha for agro-forestry projects.

- From 2 to 10 ha for forestry-agriculture-aquaculture projects, of which:

+ 500-2,000 m2 for housing space and gardening economy,

+ 10-20% of the land for afforestation and building a forest belt in agro-forestry-aquaculture projects; 70-80% for forestry-agriculture projects.

The remaining land is for development of agricultural production or aquaculture.

In the areas facing difficulties due to underdeveloped transport and irrigation, to aluminous or saline soil, or to frequent flooding..., private entrepreneurs and other economic sectors are encouraged to receive land and invest in building agro-forestry-fishery farms.

All households and individuals are strictly forbidden to set up boundaries to occupy paddy-fields or land, or take advantage of the rotation of forest land to occupy land.

SOURCES OF INVESTMENT CAPITAL

Article 14.- The State encourages all economic sectors, local and foreign, to take part in this Program with their own capital, and to make use of all capital sources of joint ventures and cooperation plans of the localities, individuals, collectives and social organizations. The State shall only provide support, supplementary investment capital.

The State shall provide support investment for this Program as follows:

a/ The capital for building systems of projects and canals to create sources of water, projects and main canals for drainage, the main roads linking districts and communes, and the building of major utility works directly invested by the branches concerned and the localities according to annual plans, shall not be accounted for in the total investment capital of each project.

b/ Direct budget investment for the projects is made in:

- Building protection dikes and embankments, and canals and ditches of third grade linked to canals for irrigation, drainage, prevention of sea water and washing acidity.

- Building transport projects in the area of waste land of the project.

- Together with the branches concerned, helping to build medical stations, primary schools, wells and water tanks in the areas really facing difficulties in these respects.

- Planting concentrated protection forests and forest belts, to protect river and sea dikes and submerged forests against sand, waves, winds and storms, giving priority to key areas frequently threatened by storms and tidal waves, such as the seas shores in Minh Hai and Kien Giang provinces, Ho Chi Minh City, Ha Tinh, Quang Binh, etc.

- Capital for professional management and agricultural promotion includes capital for drawing up the project, managing and operating the project, providing support for agricultural production, forestry and fisheries, and transfer of new technologies. This source of capital generally makes up 6-8% of the direct total investment capital of the project.

- Capital in support of the moving of people to new land, the moving of people from swamps, lagoons and floating villages to the mainland, and capital in support of areas inhabited by ethnic minorities who are facing difficulties in agricultural production, forestry and fisheries.

c/ Budget capital granted as mid-or long-term loans is used for the following purposes:

- Planting industrial trees, fruit-trees, planting forests for large trees having a cycle of more than 20 years, and breeding cattle.

- Reclaiming waster land for cultivation;

- Building ponds and swamps to raise aquaproducts, and purchasing a number of essential equipment and machinery as proposed by each specialized service.

The time limit for repayment of interest-free loans begins from the availability of commodities according to the production cycle of each type of trees and animals.

d/ Capital source and the mechanism of capital management:

All sources of capital of all branches and all socio-economic programs in the locality should be mobilized and used in a uniform and effective manner, such as capital from the branches of transport, water resources, public health, education, sedentarization, from the national programs for generating employment, eradicating hunger and reducing poverty, supplying clean water, and capital from other economic sectors and foreign countries.

The sources of budget allocations (including investment and professional capital) and interest-free loans as mentioned above are all managed by the State Planning committee and communicated by the Ministry of Finance to the People's Committees of provinces and cities; the branches can only give their advice on allocations, and do not directly control the capital and distribute it.

The allocation and lending of capital to the project owners (or private households) and the repayment of capital shall be done by only one agency to b appointed by the Ministry of Finance.

e/ The source of credit capital granted as low-interest loans is used for the following purposes:

- Planting forests of small trees having a cycle of under 20 years.

- Developing the breeding of small animals and the culture of aquaproducts (buying strains, preventing and treating diseases).

- Building services system (husking rice, processing fish meal and fish-sauce, refining sugar, building mechanical repair workshops on a small scale).

- Buying vehicles and water transport means in areas facing difficulties.

f/ When the need arises for the building of major processing zones for the production of cane sugar, fruits and vegetables, husking and polishing rice for export, processing aquaproducts, and cold storages..., a separate project must be drawn up. The State shall help in calling for investment in joint and cooperation ventures with local and foreign economic organizations, or applying for loans from international financial organizations to carry out such projects.

Article 15.- The ministries and branches at the center and the localities should pay proper attention to the investment in building science and technology facilities and the transfer of new technologies to the project areas.

Apart from the common capital of this Program, every year the State Planning Committee, the branches, localities and scientific research institutions concerned must appropriate the necessary funds, including investment fund and professional fund, for basic research projects, apply technical advances, especially for the study, application and transfer of new technologies to the project areas under this Decision.

Article 16.- If the other economic sectors (not managed by the State) take part in carrying out this Program with their own capital, they shall enjoy investment priority policies as stipulated at Chapter III of the Law on Encouragement to Domestic Investment; in addition, they shall enjoy the following incentive policies:

a/ If they provide technical agro-forestry-fishery services in the production, processing and marketing of products, they shall enjoy equal rights and obligations as the State-owned economic units.

b/ If they directly take part i n building medium-and large-scale areas for supplying agro-forestry-fishery materials relating to the manufacture of export goods, apart from their own capital, they shall be considered by the State for the granting of 20-30% of the total investment capital of the project in the form of low-interest credit loans of this Program.

If these economic sectors take part in building welfare projects such as medical stations and schools at the project areas, they shall receive State support fund equal to 50% of the budget allocation for the construction of the project.

c/ If the other economic sectors at home and abroad invest in the processing and preservation of agro-forestry-fishery products, they shall enjoy priority policies according to the Law on Encouragement to Domestic Investment, and the Law on Foreign Investment.

If they invest in the transfer of high-quality species of plants and animals, or in building preservation and processing systems of advanced international standard for agro-forestry-fishery products, they shall enjoy the special priority regime of the State concerning the procedure for granting the right to use land, the reception of support fund for building infrastructure facilities in the project area, for the recruitment of labor, etc., with the aim of crating the most favorable conditions for such work.

EXPERTISE AND RATIFICATION OF PROJECTS

Article 17.- The expertise and ratification of a project is conducted as follows:

a/ Expertising projects:

With regard to the projects under local management, before the People's Committees of provinces ratify them, the specialized ministries (the Ministry of Forestry for forestry-agriculture-fishery projects; the Ministry of Agriculture and Food Industry for agro-forestry projects, etc.) must give their opinions in writing on the expertise eof the project. The specialized ministry which is assigned the task of expertise shall discuss with the ministries and branches concerned. The expertise should be conducted expeditiously, mainly concerning the direction of production, the structure of investment capital, the level of concentration (not widely scattered), and the main economic and technical solutions to ensure high efficiency and feasibility of the project.

With regard to the projects under the management of the ministries and branches at the center, before the Ministers or Heads of the branches notify them, the People's Committee of the province where the project is undertaken, should give its approval (if the document on the allotment of land issued by the province dos not yet mention the aim, direction and task of the allotted area).

The State Planning Committee shall have to expertise the projects to be ratified by the Prime Minister.

b/ Ratifying projects:

- The Prime Minister shall ratify large-scale projects with a total investment capital of 100 billion Vietnamese Dong or more.

- The Ministers and the Heads of the ministerial-level agencies, the Presidents of the People's Committees of the provinces and cities under the Central Government shall ratify the projects with a total investment capital of less than 100 billion Vietnamese Dong. With regard to projects with a total investment capital of from 15 billion to 100 billion Vietnamese Dong, before ratifying them, the ratifying person must get the approval of the ministry concerned and of the Chairman of the State Planning Committee.

- The Presidents of the People's Committees of the provinces and cities directly under the Central Government shall exercise State management of all the projects undertaken i n their localities.

- The State Planning Committee, the Ministry of Finance, and Ministry of Science, Technology and Environment shall examine the projects to ensure a balance economic structure of the whole area, and to detect any problem of technology and environment.

- If the projects already ratified by the Ministries and provinces fail to conform to the aim and contents of this Program, they must be revised, readjusted and re-ratified.

ORGANIZATION OF IMPLEMENTATION

Article 18.- The Ministry of Agriculture and Food Industry, the Ministry of Forestry, the Ministry of Labor, War Invalids and Social Affairs, the Ministry of Aquatic Resources, the Ministry of Water Resources, the Ministry of Construction, the Ministry of Energy, the Ministry of Public Health, the Ministry of Education, the Ministry of Defense,... and the branches concerned, shall, in furtherance of their function and task and together with the localities, join in implementing this Program in a comprehensive and balanced manner.

The Ministry of Labor, War Invalids and Social Affairs and the Committee for Nationalities and Mountain Areas shall study to early work out support policies for the people moving to new settlements, to areas of great difficulties and the areas of ethnic minorities with the aim of early stabilizing production and the living conditions of the people in the new settlements.

Article 19.- The social and mass organizations can directly take part in the Managing Committee of the project or directly provide services in the supply of strains, technical materials, and marketing the products at the locality where the project is carried out.

The Ho Chi Minh Communist Youth Union, in cooperation with the branches concerned and the local People's Committee, shall organize Voluntary Youth groups and Young Volunteers units to promote the role of the youth as a shock force in implementing such projects, as reclaiming waster land, building roads, irrigation works, cultural and social projects, etc., or organizing cultural and social activities in the new land which faces great difficulties in the new land which faces great difficulties. The Union Central Committee can assume responsibility for guiding some projects in key areas to draw experiences for other projects.

Article 20.- On directing the implementation of this Program:

Providing direction for the implementation of this Program should be closely combined with the implementation of the Program for regreening bare hills (according to Decision No.327 on the 15th of September 1992 of the Chairman of the Council of Ministers) in order to avoid overlapping of work and ensure a unified, balances and uniform implementation of this Program, particularly in the ratification of projects, deciding on the investment policy, financial policy and socio-economic strategy for different areas.

- At the center, the Prime Minister shall assign a Cabinet member to directly follow and organize the implementation of this Program, and cooperate with the branches and localities in inspecting, stepping up and working out measures to implement this Program while at the same time directing Program 327.

The Permanent Bureau of this Programs Steering Committee is set up at the State Planning Committee.

- At each specialized and cities directly under the Central Government, the Presidents or Vice-Presidents in charge of the agro-forestry-fishery sector who currently in charge of Program 327, shall direct this Program as well.

At the provinces and cities directly under the Central Government, the Presidents or Vice-Presidents in charge of the agro-forestry-fishery sector who are currently in charge of program 327, shall direct this program as well.

- In order to ensure a satisfactory implementation of the Program for tapping and using waste land, alluvial soil on the river and sea shores, and water surface in the plains under this Decision, from now to the end of the third quarter of 1995, all the provinces and branches at the center should review the reclamation of waste land in the plains during recent years (from 1989-90 to 1995), including the reviewing of the tapping of the Mekong river delta, in order to draw the necessary experiences for a satisfactory implementation of this Program in the years ahead.

Article 21.- The Ministries, the ministerial-level Agencies, the Agencies attached to the Government, the People's Committees of the provinces and cities directly under the Central Government concerned, shall, within their responsibility and powers, select responsible and competent cadres to manage the projects of their branch or locality. The State Planning Committee, the Ministry of Agriculture and Food Industry, the Ministry of Forestry, the Ministry of Labor, War Invalids and Social Affairs, the Ministry of Aquatic Resources, and the Ministry of Finance shall issue guidelines to direct the branches and localities in the implementation of this Program.

Article 22.- This Decision takes effect from the date of its publication; all documents issued earlier which are contrary to this Decision are annulled.

The Ministers, the Heads of ministerial-level agencies, the Heads of the agencies attached to the Government, the Presidents of the People's Committees of the provinces and cities directly under the Central Government shall have to implement this Decision.

Prime Minister

VO VAN KIET